SIGNALING IT WILL be harder for chain stores to open on Fillmore Street in the future, the city’s Board of Appeals on May 15 revoked the building permit secured by German-based clothing company Oska for the space at 2130 Fillmore, where it had intended to open a new boutique.

Now that Oska has been adjudged a chain store subject to the city’s formula retail ordinance, it cannot open without going through a conditional use hearing to determine whether it is appropriate in a neighborhood already home to many chain stores and women’s clothing shops.

The formula retail ordinance requires conditional use approval before companies with 11 or more retail establishments in the U.S. can open in many San Francisco neighborhoods, including upper Fillmore Street.

The board found that Oska has nine stores currently operating in the U.S., as well as leases for two additional stores — in Healdsburg and in Evanston, Illinois — bringing its total to 11 retail establishments within the meaning of the law.

“Savvy chain store operators are intentionally opening locations in the district prior to exceeding the 11-store cap in order to avoid application of the formula retail controls,” the board stated in its written preliminary findings issued a week after the hearing. “The existing concentration of formula retail uses is having a negative impact on the character of the neighborhood.”

Oska’s west coast managing partner Monique Ramos was issued a permit in early March to refurbish the space occupied for two decades by Jet Mail. But Miyo Ota, owner of the women’s boutique Mio, located a block away, filed an appeal.

Ota and others who spoke in support of her appeal at the May 15 hearing accused some corporate owners of strategically opening on Fillmore Street while still under the limit of 11 stores, even as they are busy planning further expansion.

Examples include the women’s athletic apparel shop Athleta, owned by the Gap, which opened in January 2011 at 2226 Fillmore and now boasts 41 stores nationwide with more coming. Drybar, the blow-dry salon that opened at 1908 Fillmore in June 2011, now has 28 stores in operation with another in the works in Encino.

Nearly half of the stores on Fillmore would now be defined as formula retail. Some, such as Starbuck’s, Eileen Fisher and Noah’s Bagels, established a presence on the street before the ordinance was extended to Fillmore by the voters in 2008.

Ironically, the chain store ordinance had the effect of spurring more corporate labels to rush to set up shop here before they “get to 11.” Of the two dozen new stores that opened on Fillmore Street in recent months, none were considered formula retail when they opened, yet nearly all now surpass the limit of 11.

Ota and those skeptical of more chains on the street argued that the city should consider whether a potential newcomer was a chain-based business planning more than 11 stores.

Ota also encouraged city officials to count online stores as “retail sales establishments” under the ordinance.

“Open your minds and realize that the Internet should be counted as part of the ‘retail establishment’ under the law,” Ota urged.

But Oska’s attorney, John Kevlin, argued that counting websites as retail establishments “would be a significant departure from past practices” in interpreting the formula retail law.

Some also testified they are concerned about retailers with stores out of the country — Oska, for example, has nearly 50 freestanding stores outside the U.S. — which gives them an economic advantage over small and family-owned businesses.

Although some commissioners said they were concerned about those issues, the preliminary findings from the Board of Appeals did not address Internet stores or foreign-based businesses. Instead, the board focused on the nine brick-and-mortar Oska stores already open, plus two leased sites, in holding that Oska had reached the threshold of 11. The leases, the board said, “place the company in the position to operate retail establishments shortly after, if not immediately after, the issuance of the permit.”

If Oska seeks conditional use authorization for a store on Fillmore, the Planning Commission would consider five factors:

• the existing concentration of formula retail in the neighborhood,

• the supply of similar establishments,

• compatibility with the existing architectural and aesthetic character of the neighborhood,

• local retail vacancy rates, and

• the mix of citywide-serving and neighborhood-serving retail uses.

Oska’s Monique Ramos would not comment about whether Oska plans to pursue conditional use authorization to open a store on Fillmore.

harder the rules to open and do business – higher the cost , which we all going to pay for it … everything at the expense of the consumer

EssEffOh

@ювелирный магазин

“harder the rules to open and do business – higher the cost , which we
all going to pay for it … everything at the expense of the consumer”

This is an incredibly simplified understanding of how neighborhoods, cities, and the world works. And it assumes a value system many of us have no desire to live by.

Corporate retailers with near limitless capacities for rent move into our neighborhood and cause increased rents hence increasing the cost of living for all of us. Locally owned mom and pop businesses generally pay less rent and hence keeping the cost of living lower in our neighborhoods.

But even if “harder rules” meant a higher cost of business (which definitely is not always the case) there are things that matter more than the price of products. We are not merely consumers. We are first and foremost human beings. The culture, character, and community of our neighborhoods
matter to many of us more than the price of products in out stores.

Businesses that grow out of the community and return money directly into the community are much more sustainable and beneficial to the neighborhood. Corporate entities that suck out our dollars and distribute them to stockholders in far off place are not necessarily good for our communities. Quite the contrary I would argue.

Another locally owned shop bites the dust. Vitamin Express, at 2047 Fillmore, is closing at the end of August.

Owner Michael LeVesque said he has a large customer base and a sympathetic landlord, but that staffing issues and online ordering helped do him in.

“Getting the special kind of staff we need and affording to pay them enough to remain in the city is becoming prohibitive,” he says.

He will consolidate his operations at his other store at 1428 Irving Street.

FILLMORE BAKESHOP
SIGNS 10-YEAR LEASE

The father-daughter team who own Fillmore Bakeshop at Fillmore & Bush have signed a new 10-year lease.

Elena and Doug Basegio have developed a loyal local following in the five years since they took over Patisserie Delanghe. At first it looked like a 90 percent rent hike might force them out. They’re still facing a big increase, but hoping to make it work. Those fruit pies are safe.

MORE CHANGE
AT THE AMELIA

In the same block of setback storefronts underneath the Amelia condos, there’s another vacancy. First Barry for Pets closed after 40 years on Fillmore at the end of April. Now the fashion shop A City Obsession has called it quits barely a year after arriving.

At the southern end of the block, Pizza Inferno is still waiting to begin its transformation into the Academy.

NOW IT’S THE
KIMPTON BUCHANAN

What has most recently been the Hotel Tomo at 1800 Sutter in Japantown — sold last year to Kimpton Hotels and Restaurants — reopened June 23 as the Kimpton Buchanan.

Most of the focus has been on the duo’s plans to expand into Tokyo, New York and Los Angeles. But it could bring a new gathering place to the top of Fillmore Street, too.

“We’re very excited about the prospect of joining this lovely neighborhood,” said Blue Bottle boss James Freeman.

A NEW INCARNATION
AT OCTAVIA & BUSH

An elegant new dining option has arrived in the neighborhood, with Octavia opening at the corner of Octavia and Bush, previously home of Baker & Banker, Quince, Meetinghouse and others.

Under chef-owner Melissa Perello — much lauded for her cooking at Frances in the Castro — the dining room is lighter and more minimal and the menu simplified and seasonal. Initial reviews are glowing. Octavia is open for dinner, except on Monday, and a private dining room is coming in the former downstairs bakery.

While the casual Italian shoe brand Superga pursued its permits to move into 2326 Fillmore — now granted — women’s eco-fashion retailer Amour Vert popped up again in the space. Amour Vert had a temporary pop-up in the former Jurlique space at 2136 Fillmore during the holiday season.

JUICY NEWS MOVES
TO UNION STREET

Juicy News, the newstand at 2453 Fillmore for the past 23 years, is settling into its new home down the hill at 2181 Union Street, just a few doors east of Fillmore.

Its new digs were once the home of the legendary Minerva's Owl bookstore. "This shop had massive history," says Salimi. "So good vibes and heritage all around."

PAINT STORE MOVES
TO THE FILLMORE

Lower Fillmore has a useful new business: a paint store. G&R Paint Co. — the highly regarded purveyor of Benjamin Moore and other paint at 1238 Sutter — has moved to 1491 Webster, in the Safeway parking lot.

The store is part of the locally owned Creative Paint company, which has four paint stores and two hardware stores, including Brownie’s on Polk Street.